Unlike most markets, prices do not convey value in health care. In light of this problem, the Boston-based Institute for Clinical and Economic Review has been attempting to calculate the value of new medical technologies in order to assign a reasonable price to the latest innovations.
The Blue Shield of California Foundation supports ICER’s research, and Blue Shield of California, with 4 million members, has indicated it wants to use ICER research when making coverage decisions. Beyond California, Steve Miller, chief medical officer of Express Scripts, the nation’s largest Pharmacy Benefit Manager, said, “We plan to reference the findings from this independent, trusted organization in our subsequent negotiations with manufacturers.”
About the Author
Wayne Winegarden is a Senior Fellow in Business and Economics at the Pacific Research Institute.